U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                   FORM 10-QSB

(Mark  One)

 X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT  OF  1934
     For  the  quarterly  period  ended:  March  31,  2003
                                         -----------------

     TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF THE SECURITIES
---  EXCHANGE  ACT  OF  1934
     For  the  transition  period  from  _______________  to  ________________

                       Commission file number:   33-43317
                                               ----------

                                 EASTON BANCORP, INC.
                                 --------------------
        (Exact name of small business issuer as specified in its charter)

            Maryland                               52-1745344
          ------------                          -----------------
     (State  of  incorporation)       (I.R.S. Employer Identification No.)

                  501 Idlewild Avenue, Easton, Maryland  21601
                  --------------------------------------------
                    (Address of principal executive offices)

                                 (410) 819-0300
                                 --------------
                           (Issuer's telephone number)

                                 Not Applicable
            --------------------------------------------------------
    (Former name, former address and former fiscal year, if changed since last
                                     report)


     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the  latest  practicable  date:

     On May 2, 2003, 584,319 shares of the issuer's common stock, par value $.10
per  share,  were  issued  and  outstanding.

Transitional Small Business Disclosure Format (check one):    Yes       No  X
                                                                  ---      ---


<PAGE>
<TABLE>
<CAPTION>
                                     PART I
                              FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS.

                       EASTON BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


                                                        March 31,   December 31,
                                                          2003          2002
                                                       -----------  -------------
<S>                                                    <C>          <C>
                                     ASSETS
Cash and due from banks                                $ 3,102,927  $   2,361,869
Federal funds sold                                       4,575,261      1,233,376
Investment in Federal Home Loan Bank stock                 431,500        431,500
Investment securities available for sale                 5,384,230      5,040,366
Loans held for sale                                      4,012,243      4,193,610
Loans, less allowance for credit losses of
  $996,874 and $924,859 respectively                    74,644,310     71,465,781
Premises and equipment, net                              1,628,717      1,569,357
Accrued interest receivable                                371,534        420,941
Bank Owned Life Insurance Policy                         1,356,764      1,335,376
Other assets                                               124,066        131,416

Other Real Estate Owned                                    223,377            -0-
Deferred income taxes                                      181,468        157,129
                                                       -----------  -------------
           Total assets                                $96,036,397  $  88,340,721
                                                       ===========  =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                                  $ 9,307,066  $   7,804,457
  Interest-bearing                                      74,365,033     66,339,109
                                                       -----------  -------------
           Total deposits                               83,672,099     74,143,566
Accrued interest payable                                   132,236        110,480
Securities sold under agreements to repurchase                 -0-         60,964
Note payable                                             5,688,317      7,510,135
Other liabilities                                          216,987        280,963
                                                       -----------  -------------
           Total liabilities                            89,709,639     82,106,108
                                                       -----------  -------------

Stockholders' equity
  Common stock, par value $.10 per share;
    authorized 5,000,000 shares; 565,833
    shares issued and outstanding                           56,583         56,583
  Additional paid-in-capital                             5,282,086      5,282,086
  Retained earnings                                        929,878        821,778
                                                       -----------  -------------
                                                         6,268,547      6,160,447
  Accumulated other comprehensive income                    58,211         74,166
                                                       -----------  -------------
           Total stockholders' equity                    6,326,758      6,234,613
                                                       -----------  -------------
           Total liabilities and stockholders' equity  $96,036,397  $  88,340,721
                                                       ===========  =============
</TABLE>


                                        1
<PAGE>
<TABLE>
<CAPTION>
                       EASTON BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)


                                              Three Months Ended
                                                  March 31,
                                              ------------------
                                               2003        2002
                                            ----------  ----------
<S>                                         <C>         <C>
Interest revenue
 Loans, including fees                      $1,246,788  $1,171,062
 Investment securities                          48,833      72,147
 Federal funds sold                              7,432       8,141
                                            ----------  ----------
     Total interest revenue                  1,303,053   1,251,350

Interest expense                               484,031     526,643
                                            ----------  ----------

     Net interest income                       819,022     724,707

Provision for loan losses                       58,255      52,815
                                            ----------  ----------

     Net interest income after
       provision for loan losses               760,767     671,892
                                            ----------  ----------

Other operating revenue                        202,133     123,545
                                            ----------  ----------

Other expenses
 Salaries and benefits                         450,471     361,521
 Occupancy                                      39,496      36,735
 Furniture and equipment                        32,458      37,173
 Other operating                               218,083     177,515
                                            ----------  ----------
     Total operating expenses                  740,508     612,944
                                            ----------  ----------

Net income before income taxes                 222,392     182,493

Income taxes                                    86,000      70,000
                                            ----------  ----------

Net income                                  $  136,392  $  112,493
                                            ==========  ==========


Earnings per common share - basic           $     0.24  $     0.20
                                            ==========  ==========

Earnings per common share - diluted         $     0.23  $     0.20
                                            ==========  ==========
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
                       EASTON BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                       Three Months Ended
                                                           March 31,
                                                      -------------------
                                                      2003           2002
                                                      ----           ----
<S>                                               <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Interest received                               $ 1,372,140   $ 1,263,201
  Other revenue received                              233,415       123,545
  Cash paid for operating expenses                   (689,970)     (510,166)
  Interest paid                                      (483,663)     (499,918)
  Loans originated for sale                        (6,993,093)   (3,106,292)
  Proceeds from loan sales                          7,174,360     2,276,795
  Taxes Paid                                         (211,352)       (8,561)
                                                  ------------  ------------
                                                      401,837      (461,396)
                                                  ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash paid for premises and equipment                (89,088)      (15,623)
  Net loans to customers                           (3,464,243)     (332,975)
  Investment securities purchased                  (1,352,101)     (104,877)
  Proceeds from sales/maturities of investments       970,760       722,297
  Cash Paid for Software                               (1,680)      (14,490)
                                                  ------------  ------------
                                                   (3,936,352)      254,332
                                                  ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in time deposits                       117,868     4,450,879
  Net increase (decrease) in other deposits         9,410,665    (4,936,417)
  Net increase (decrease) in securities sold
    under agreements to repurchase                    (60,964)        4,856
  Other Borrowings                                 (1,821,819)       (1,885)
  Dividends Paid                                      (28,292)     (140,080)
                                                  ------------  ------------
                                                    7,617,458      (622,647)
                                                  ------------  ------------

NET INCREASE (DECREASE) IN CASH                     4,082,943      (829,711)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    3,595,245     6,246,506
                                                  ------------  ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD        $ 7,678,188   $ 5,416,795
                                                  ============  ============
</TABLE>


                                        3
<PAGE>
<TABLE>
<CAPTION>
                       EASTON BANCORP, INC. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                                  (Unaudited)


RECONCILIATION OF NET INCOME TO NET CASH
  PROVIDED (USED) IN OPERATING ACTIVITIES
<S>                                                          <C>         <C>
Net income                                                   $ 136,392   $ 112,493
  Adjustments to reconcile net income to net cash
   Provided (used) in operating activities:
     Depreciation and amortization                              33,364      36,005
     Provision for loan losses                                  58,255      52,815
     Loan sales net proceeds                                   181,267    (829,497)
     (Increase) in cash surrender value of insurance           (21,388)    (10,305)
     Securities amortization/accretion, net                     13,304      10,386
     Deferred Income Taxes                                     (16,121)        -0-
     Accrued Income Taxes net of prepaid taxes                (109,231)     61,439
     Decrease (Increase) in accrued interest receivable
       and other assets                                         56,994     (17,470)
     Increase in operating accounts payable
       and other liabilities                                    64,819     123,475
     Increase (Decrease) in deferred loan origination fees       4,182        (737)
                                                             ----------  ----------
                                                             $ 401,837   $(461,396)
                                                             ==========  ==========
</TABLE>


                                        4
<PAGE>
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS:

1.   Basis  of  Presentation
     -----------------------

     The  accompanying  unaudited  condensed  financial  statements  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the instructions to Form 10-QSB and Item 310(b)
of  Regulation S-B of the Securities and Exchange Commission.  Accordingly, they
do  not include all the information and footnotes required by generally accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary  for a fair presentation have been included. Operating results for the
three months ended March 31, 2003, are not necessarily indicative of the results
that  may  be  expected  for  the  year  ended  December  31, 2003.  For further
information,  refer  to  the  consolidated  financial  statements  and footnotes
thereto  for  the Company's fiscal year ended December 31, 2002, included in the
Company's  Form  10-KSB  for  the  year  ended  December  31,  2002.

2.   Cash Flows
     -----------

     For  purposes  of  reporting  cash flows, cash and cash equivalents include
cash  on  hand,  unrestricted  amounts  due from banks, overnight investments in
repurchase  agreements,  and  federal  funds  sold.


3.   Comprehensive  Income
     ---------------------

     Comprehensive income consists of:

                                              Three Months Ended
                                                  March 31,
                                                --------------------------------
                                                        2003            2002
                                                        ----            ----
              Net Income                              $136,392        $112,493
              Unrealized gain (loss) on
                 investment securities available
                 for sale net of income taxes         (15,955)        (22,515)
                                                      --------        --------
              Comprehensive Income                    $120,437        $ 89,978
                                                      ========        ========


                                        5
<PAGE>
     This Report contains statements which constitute forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of  the Securities Exchange Act of 1934.  These statements appear in a number of
places in this Report and include all statements regarding the intent, belief or
current  expectations of the Company, its directors or its officers with respect
to, among other things: (i) the Company's financing plans; (ii) trends affecting
the  Company's financial condition or results of operations; (iii) the Company's
growth  strategy and operating strategy; and (iv) the declaration and payment of
dividends.  Investors are cautioned that any such forward-looking statements are
not  guarantees  of  future performance and involve risks and uncertainties, and
that  actual  results  may  differ  materially  from  those  projected  in  the
forward-looking  statements  as a result of various factors discussed herein and
those  factors  discussed in detail in the Company's filings with the Securities
and  Exchange  Commission.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS.

     Easton  Bancorp,  Inc. (the "Company") was incorporated in Maryland on July
19,  1991,  to become a one-bank holding company by acquiring all of the capital
stock  of Easton Bank & Trust Company (the "Bank") upon its formation.  The Bank
commenced  business  on July 1, 1993, and the only activity of the Company since
then  has  been the ownership and operation of the Bank.  The Bank was organized
as  a nonmember state bank under the laws of the State of Maryland.  The Bank is
engaged  in  a general commercial banking business, emphasizing in its marketing
the  Bank's local management and ownership, from its main office location in its
primary  service  area, Talbot County, Maryland.  During 1999, the Bank opened a
full-service  branch  office  in  Denton, Maryland, which is in Caroline County.
In  addition,  during  2001,  the  Bank  opened  a full service branch office in
Oxford,  Maryland,  which is in Talbot County.  In April 2003, the Bank opened a
second  full-service  branch in Easton, Maryland.   The Bank offers a full range
of  deposit  services that are typically available in most banks and savings and
loan  associations,  including checking accounts, NOW accounts, savings accounts
and  other  time  deposits  of  various  types,  ranging from daily money market
accounts  to  longer-term certificates of deposit.  In addition, the Bank offers
certain  retirement  account  services,  such as Individual Retirement Accounts.
The  Bank  offers  a  full range of short-to-medium-term commercial and personal
loans.  The  Bank  also  originates and holds or sells into the secondary market
fixed  and  variable  rate  mortgage  loans  and  real  estate  construction and
acquisition  loans.  Other  bank services include cash management services, safe
deposit  boxes,  traveler's  checks,  debit cards, direct deposit of payroll and
social  security  checks,  and  automatic drafts for various accounts.  The Bank
also  offers  for  sale  non-deposit products such as mutual funds, variable and
fixed  annuities  and  long  term  care.

     The  following  discussion  of  the  financial  condition  and  results  of
operations  of  the  Company  should  be  read in conjunction with the Company's
financial  statements  and  related  notes  and  other  statistical  information
included  elsewhere  herein.

Results  of  Operations
-----------------------

     Net  income  for the Company for the three months ended March 31, 2003, was
$136,392,  compared  to  $112,493  during the corresponding period of 2002.  Net
interest  income increased $94,315 and other operating income increased $78,588;
however,  these  increases  were  offset by increases of $5,440 in provision for
loan  losses,  $127,564 in total operating expenses and $16,000 in income taxes.
The increase in net interest income is primarily due to declining interest rates
on  deposits, which resulted in a decrease in interest expense of $42,612 offset
by  an increase in interest earned of $51,703 due primarily to loan growth.  The
increase  in  total operating expenses is primarily attributed to an increase in
salaries  and benefits of $88,950 and an increase in other operating expenses of
$40,568.


                                        6
<PAGE>
     The  following  table depicts interest income on earning assets and related
average  yields  as well as interest expense on interest-bearing liabilities and
related  average  rates  paid for the three months ended March 31, 2003, and the
year  ended  December  31,  2002:

<TABLE>
<CAPTION>
                                                    CONSOLIDATED                  CONSOLIDATED
                                                    ------------                  ------------
                                          AVERAGE BALANCES, INTEREST,      AVERAGE BALANCES, INTEREST,
                                                    AND YIELDS                      AND YIELDS
                                           For the Three Months Ended           For the Year Ended
                                                  March 31, 2003                December 31, 2002
                                                 ---------------                -----------------
                                         Average                           Average
                                         Balance     Interest    Yield     Balance     Interest    Yield
                                       -----------  -----------  ------  -----------  -----------  ------
<S>                                    <C>          <C>          <C>     <C>          <C>          <C>
ASSETS
Federal funds sold                     $ 2,553,493  $    7,602    1.19%  $ 3,133,360  $   51,816    1.65%
Interest-bearing deposits                      -0-         -0-     -0-           -0-         -0-     -0-
Investment securities:
   State municipal bonds                   208,261       3,223    6.19%       99,684       6,181    6.20%
   U.S. government agency                4,344,280      43,216    3.98%    5,255,854     241,177    4.59%
   Other                                   431,500       5,020    4.72%      431,500      24,024    5.57%
                                       -----------  -----------  ------  -----------  -----------  ------
      Total investment securities        4,984,041      51,459    4.13%    5,787,038     271,382    4.69%
                                       -----------  -----------  ------  -----------  -----------  ------
Loans:
   Demand and time                      18,539,035     269,399    5.89%   16,758,375   1,067,587    6.37%
   Mortgage                             54,832,759     900,252    6.66%   48,093,350   3,468,875    7.21%
   Installment                           3,678,162      79,108    8.72%    3,717,123     340,985    9.17%
                                       -----------  -----------  ------  -----------  -----------  ------
      Total loans                       77,049,956   1,248,759    6.57%   68,568,848   4,877,447    7.11%
Allowance for loan losses                  949,949                           830,372
                                       -----------                       -----------
      Total loans, net of allowance     76,100,007   1,248,759    6.65%   67,738,476   4,877,447    7.20%
                                       -----------  -----------  ------  -----------  -----------  ------
Total interest-earning assets           83,637,541   1,307,820    6.34%   76,658,874   5,200,645    6.78%
                                       -----------  -----------  ------  -----------  -----------  ------
Noninterest-bearing cash                 2,667,011                         2,093,216
Bank premises and equipment              1,641,817                         1,594,570
Other assets                             1,875,231                         1,870,535
                                       -----------                       -----------
        Total assets                   $89,821,600                       $82,217,195
                                       ===========                       ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
  Savings and NOW deposits             $17,313,700  $   26,897    0.63%  $15,225,692  $  167,992    1.10%
  Money market deposits                  8,520,860      25,694    1.22%    7,054,689      95,885    1.36%
  Other time deposits                   42,852,584     375,122    3.55%   42,768,276   1,609,468    3.76%
                                       -----------  -----------  ------  -----------  -----------  ------
    Total interest-bearing deposits     68,687,143     427,713    2.53%   65,048,657   1,873,345    2.88%
Noninterest-bearing deposits             8,247,373         -0-     -0-     7,981,612         -0-     -0-
                                       -----------  -----------  ------  -----------  -----------  ------
    Total deposits                      76,934,516     427,713    2.25%   73,030,269   1,873,345    2.57%
Borrowed funds                           6,166,236      56,318    3.65%    2,958,155     123,125    4.16%
                                       -----------  -----------  ------  -----------  -----------  ------
                                        83,100,752     484,031    2.36%   75,988,424   1,996,470    2.63%
                                                    -----------  ------               -----------  ------
Other liabilities                          467,905                           305,658
Stockholders' equity                     6,252,943                         5,923,113
                                       -----------                       -----------
        Total liabilities and
        Stockholders' equity           $89,821,600                       $82,217,195
                                       ===========                       ===========

Net interest spread                                               3.98%                             4.15%
                                                                 ======                            ======
Net interest income                                 $  823,789                        $3,204,175
                                                    ===========                       ===========
Net margin on interest-earning assets                             3.99%                             4.18%
                                                                  =====                             =====
</TABLE>

    ---------------------------------------------
     Interest on tax-favored investments and loans are reported with adjustment
to provide a fully taxable equivalent basis.


                                        7
<PAGE>
     The  Bank's  loan  portfolio (excluding loans held for sale) increased from
$71.5  million  at  December  31, 2002, to $74.6 million at March 31, 2003.  The
Bank's  provision  for  loan  losses was $58,255 for the quarter ended March 31,
2003,  compared  to $52,815 for the quarter ended March 31, 2002.  The allowance
for  loan  losses  was  $996,874  at  March  31,  2003,  or 1.32% of total loans
(excluding  loans  held for sale), compared to $924,859 at December 31, 2002, or
1.28%.  The  level  of  the  allowance  for  loan losses represents management's
current  estimate  of future losses in the loan portfolio; however, there can be
no  assurance  that  loan losses in future periods will not exceed the allowance
for  loan  losses  or  that  additional  increases  in the allowance will not be
required.

     Activity in the allowance for loan losses is shown below:

<TABLE>
<CAPTION>
                            ALLOWANCE FOR LOAN LOSSES

                                                March 31,    December 31,
                                                  2003           2002
                                               -----------  --------------
<S>                                            <C>          <C>
Balance at beginning of year                   $  924,859   $     750,768

Loan Losses:
      Commercial                                      -0-         125,187
      Real Estate                                     -0-           8,000
      Consumer                                      5,192          19,050
                                               -----------  --------------
          Total loan losses                         5,192         152,237
                                               -----------  --------------

Recoveries on loans previously charged off
      Commercial                                   12,785           3,975
      Real Estate                                     -0-             -0-
      Consumer                                      6,167          31,920
                                               -----------  --------------
          Total loan recoveries                    18,952          35,895
                                               -----------  --------------

Net loan losses                                   (13,760)        116,342
Provision for loan losses charged to expense       58,255         290,433
                                               -----------  --------------
Balance at end of period                       $  996,874   $     924,859
                                               ===========  ==============

Allowance for loan losses to outstanding
     loans at end of period (excluding loans         1.32%           1.28%
     held for sale)

Net charge-offs/(recoveries) to average
     loans - annualized                            (0.02%)           0.17%
</TABLE>


                                        8
<PAGE>
<TABLE>
<CAPTION>
                    NON-PERFORMING ASSETS AND PAST-DUE LOANS

     Nonaccrual loans and loans past due 90 days or more are as follows:

                                     March 31,   December 31,
                                        2003         2002
                                     ----------  -------------
<S>                                  <C>         <C>
Nonaccrual
   Commercial                        $  153,324  $      33,073
   Mortgage                             213,904        482,822
   Installment                            4,818          8,215
                                     ----------  -------------
                                     $  372,046  $     524,110
                                     ==========  =============

Loans past due ninety days or more,
  still accruing interest            $   14,019  $       1,000

Total non performing loans           $  386,065  $     525,110

Interest not accrued                 $    2,625  $      14,750
</TABLE>

     Noninterest  expense  increased  $127,564 to $740,508 for the quarter ended
March  31,  2003,  from  $612,944  for  the  quarter  ended March 31, 2002.  The
increase  was  primarily  related  to  the increases in salaries and benefits of
$88,950 and an increase in other operating expenses of $40,568.  The increase in
salaries  and  benefits  was  due  to  annual  salary  increases, an increase in
mortgage origination fee income earned, two new part-time employees and four new
full-time  employees.

     Return  on  average  assets and average equity, on an annualized basis, for
the  quarter ended March 31, 2003, was .62% and 8.85%, respectively, compared to
..60%  and 8.17%, respectively, for the same quarter of 2002.  Earnings per share
on  a  fully  diluted basis for the quarters ended March 31, 2003, and March 31,
2002,  amounted  to  $.23  and  $.20,  respectively.

     The  Company's  assets  ended  the first quarter of 2003 at $96 million, an
increase of $7.7 million, or 8.7%, from $88.3 million at December 31, 2002. This
increase  can  be  attributed  primarily  to increases in federal funds sold and
investment  securities  of  $3.3  million  and  $344,000,  respectively,  and an
increase of $3.2 million in the Bank's loans.  Total borrowings from the Federal
Home Loan Bank of Atlanta were approximately $5.7 million at March 31, 2003, all
of  which  were  match  funded  on  loans  made  by  the Bank to Bank customers.

     Management  expects  that  its  2003 income will exceed expenses.  Although
management  expects  that the Company's current profitably will continue, future
events,  such  as  an  unanticipated  deterioration in the loan portfolio, could
reverse  this  trend.  Management's  expectations are based on management's best
judgment  and  actual  results will depend on a number of factors that cannot be
predicted  with  certainty  and  thus  fulfillment  of management's expectations
cannot  be  assured.

Liquidity  and  Sources  of  Capital
------------------------------------

     The  $9.5 million increase in deposits from December 31, 2002, to March 31,
2003,  is  primarily  reflected  in  the  increases  in  federal  funds sold and
investment  securities  available  for  sale  of  $3.3  million  and  $344,000,
respectively,  and  an  increase  in  the  Bank's  loans of $3.2 million.  These
increases  were  offset  by  a decrease in borrowings from the Federal Home Loan
Bank  of  Atlanta of $1.8 million.  The Company's primary source of liquidity is
cash  on  hand  plus  short-term  investments.  At March 31, 2003, the Company's
liquid  assets  totaled  $17.1  million,  or 17.78% of total assets, compared to


                                        9
<PAGE>
$12.8  million, or 14.52% of total assets, at December 31, 2002.  Another source
of  liquidity  is  the $12.4 million secured line of credit the Company has from
the  Federal  Home  Loan Bank of Atlanta, of which $5.7 million is used, and the
$500,000  unsecured line of credit and the $5 million secured line of credit the
Company  has  from another correspondent bank, of which $1.8 million is pledged.
If  additional  liquidity  is  needed,  the Bank will sell participations in its
loans.

     In January 2001, the Company invested in a bank owned life insurance policy
on  the life of Jeffrey N. Heflebower, an officer of the Bank. The beneficiaries
of the policy include both the Bank and certain heirs of Mr. Heflebower. To fund
the  policy,  the  Bank  contributed $1,225,000. The cash surrender value of the
policy,  which  was  $1,356,764 as of March 31, 2003, is not considered a liquid
asset  of the Company. The policy also provides supplemental retirement benefits
for  Mr.  Heflebower.

     The  capital of the Company and the Bank exceeded all prescribed regulatory
capital  guidelines  at  March 31, 2003.  At March 31, 2003, the Tier 1 leverage
ratio  for  the Bank was 6.89%.  At March 31, 2003, the Bank had a risk-weighted
total capital ratio of 9.37%, and a Tier 1 risk-weighted capital ratio of 8.11%.
The  Company  expects  that  its current capital and short-term investments will
satisfy the Company's cash requirements for the foreseeable future.  However, no
assurance can be given in this regard as rapid growth, deterioration in the loan
quality  or  poor  earnings, or a combination of these factors, could change the
Company's  capital  position  in  a  relatively  short  period  of  time.

Dividends
---------

     The  Board of Directors declared a $0.05 per share cash dividend to be paid
to shareholders of record on January 31, 2003. The dividend was paid on February
15,  2003.  On April 28, 2003, the Board of Directors declared a $0.05 per share
cash  dividend  to  be  paid  to  shareholders  of record on April 30, 2003. The
dividend  will  be  paid on May 15, 2003.  The declaration and payment of future
dividends  will  depend  upon  a  number  of factors, including future earnings,
financial  condition, cash needs, and general business conditions.  If dividends
should  be declared in the future, the amount of such dividends presently cannot
be  estimated  and  it cannot be known whether such dividends would continue for
future  periods.

Market  Risk
------------

     Net  interest income of the Company is one of the most important factors in
evaluating  the financial performance of the Company.  The Company uses interest
sensitivity  analysis  to  determine  the  effect of rate changes.  Net interest
income  is  projected  over  a  one-year  period  to  determine the effect of an
increase  or  decrease  in the prime rate of 100 basis points.  If prime were to
decrease  100  basis  points,  the  Company  would  experience a decrease in net
interest  income  of $185,272 if all assets and liabilities maturing within that
period  were  adjusted  for  the rate change.  The sensitivity analysis does not
consider  the likelihood of these rate changes nor whether management's reaction
to  this  rate  change  would  be  to  reprice  its  loans  and  deposits.

ITEM 3.  CONTROLS AND PROCEDURES.

     Within  ninety  days  prior to the date of this report, the Company carried
out  an  evaluation,  under  the  supervision  and with the participation of its
principal  executive  officer  and  principal  financial  officer,  of  the
effectiveness  of  the design and operation of the Company's disclosure controls
and  procedures.  Based  on this evaluation, the principal executive officer and
principal financial officer concluded that the Company's disclosure controls and
procedures  are  effective  in  timely  alerting  them  to  material information
required to be included in the Company's periodic SEC reports. The design of any
system  of  controls  is  based  in  part  upon  certain  assumptions  about the
likelihood  of future events, and there can be no assurance that any design will
succeed  in  achieving  its  stated goals under all potential future conditions,
regardless  of  how  remote.


                                       10
<PAGE>
     In  addition,  the  Company  reviewed its internal controls, and there have
been  no  significant  changes  in  the  Company's internal controls or in other
factors that could significantly affect those controls subsequent to the date of
the  last  evaluation.


                                    PART II
                                OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

     There are no material pending legal proceedings to which the Company or the
Bank  is  a  party  or  of  which  any  of  their  property  is  the  subject.

ITEM 2.  CHANGES  IN  SECURITIES.

     None.

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES.

     Not  applicable.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

     There  were  no matters submitted to security holders for a vote during the
quarter  ended  March  31,  2003.

ITEM  5.  OTHER  INFORMATION.

     None.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     (a)  Exhibits.

          11.1  Computation of Earnings Per Share.

          99.1  Certification of Principal Executive Officer and Principal
                Financial Officer.

     (b)  Reports on Form 8-K.

          There were no reports on Form 8-K filed by the Company during the
          quarter ended March 31, 2003.


                                       11
<PAGE>
                                   SIGNATURES


     In  accordance  with  the  requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                 EASTON  BANCORP,  INC.
                                         ---------------------------------------
                                                     (Registrant)



Date:    May 7, 2003                      By:  /s/ R. Michael S. Menzies
       ---------------                        ----------------------------------
                                                   R. Michael S. Menzies
                                                   President



Date:    May 7, 2003                      By:  /s/ Pamela A. Mussenden
       ---------------                        ----------------------------------
                                                   Pamela A. Mussenden
                                                   Assistant  Treasurer
                                                   (Principal Financial Officer)


                                       12
<PAGE>
                                  CERTIFICATION

I, R. Michael S. Menzies, Sr., certify that:

1.   I  have  reviewed  this  quarterly report on Form 10-QSB of Easton Bancorp,
     Inc.;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a)   Designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b)   Evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c)   Presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a)   All  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b)   Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:    May 7, 2003                   /s/ R. Michael S. Menzies, Sr.
       ---------------                 -----------------------------------------
                                           R. Michael S. Menzies, Sr., President


                                       13
<PAGE>
                                  CERTIFICATION

I, Pamela A. Mussenden, certify that:

1.   I  have  reviewed  this  quarterly report on Form 10-QSB of Easton Bancorp,
     Inc.;

2.   Based  on  my  knowledge, this quarterly report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  quarterly  report;

3.   Based  on  my  knowledge,  the  financial  statements,  and other financial
     information  included  in  this  quarterly  report,  fairly  present in all
     material  respects  the financial condition, results of operations and cash
     flows  of  the  registrant  as  of,  and for, the periods presented in this
     quarterly  report;

4.   The  registrant's  other  certifying  officers  and  I  are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in  Exchange  Act  Rules  13a-14  and  15d-14) for the registrant and have:

     a)   Designed  such  disclosure  controls  and  procedures  to  ensure that
          material  information  relating  to  the  registrant,  including  its
          consolidated  subsidiaries, is made known to us by others within those
          entities,  particularly  during  the  period  in  which this quarterly
          report  is  being  prepared;

     b)   Evaluated  the  effectiveness  of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this  quarterly  report  (the  "Evaluation  Date");  and

     c)   Presented  in  this  quarterly  report  our  conclusions  about  the
          effectiveness  of  the disclosure controls and procedures based on our
          evaluation  as  of  the  Evaluation  Date;

5.   The  registrant's  other certifying officers and I have disclosed, based on
     our  most  recent  evaluation,  to  the registrant's auditors and the audit
     committee  of  registrant's  board  of directors (or persons performing the
     equivalent  functions):

     a)   All  significant  deficiencies  in the design or operation of internal
          controls  which  could  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  data  and  have
          identified  for  the  registrant's auditors any material weaknesses in
          internal  controls;  and

     b)   Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          controls;  and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report whether or not there were significant changes in internal
     controls  or  in  other  factors  that  could significantly affect internal
     controls  subsequent  to  the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:    May 7, 2003                         /s/ Pamela A. Mussenden
         -----------                         -----------------------------------
                                                    Pamela A. Mussenden
                                                    Assistant Treasurer


                                       14
<PAGE>
                                INDEX TO EXHIBITS

Exhibit                                                               Sequential
Number                    Description                                Page Number
------                    -----------                                -----------

11.1         Computation of Earnings Per Share.

99.1         Certification of Principal Executive Officer and
             Principal Financial  Officer.


<PAGE>